Dollar gains vs rivals in risk-off trade

Dollar gains vs rivals in risk-off trade

10 February 2015, 12:30
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The dollar was higher against the other major currencies on Tuesday, as concerns over a potential Greek exit from the euro zone continued to dampen market sentiment.

The pair EUR/USD slipped 0.38% to 1.1282 as investors remained wary amid concerns over Greece’s future in the euro zone as negotiations with the European Union over the country's debt and bailout continued.

Greek Prime Minister has announced he will deliver on pre-election pledges to roll back austerity measures and reject an international bailout extension. Mr Tsipras is seeking a new deal to cover Greece’s funding needs until June.

Earlier Tuesday, official data showed that French industrial production rose 1.5% in December, beating expectations for a 0.4% gain. November's figure was revised to a 0.2% slip from a previously estimated 0.3% fall.

The British currency was stable against the dollar, with GBP/USD at 1.5221.

The Office for National Statistics reported U.K. manufacturing production rose 0.1% in December, compared to expectations for a 0.1% downtick. November's figure was revised to a 0.8% increase from a previously estimated 0.7% rise. Manufacturing production rose at rate of 2.4% on an annualized basis in December, above expectations for a gain of 2.0%, after rising at a rate of 3.0% in the previous month.

The data also indicated that industrial production fell by 0.2% in December, compared to expectations for a 0.1% gain, after declining 0.1% in November.

Elsewhere, USD/JPY rose 0.30% to trade at 118.99, while USD/CHF added 0.26% to trade 0.9261.

In Switzerland, official data earlier showed that consumer price inflation slipped 0.4% last month, confouding expectations for a 0.6% decline, after a 0.5% fall in December.

The Australian and New Zealand dollars were lower, with AUD/USD sliding 0.33% to 0.7775 and NZD/USD edging down 0.13% to 0.7402.

The Aussie found some support earlier, after the National Australia Bank reported that its business confidence index rose to 3 in January from a reading of 2 the previous month.

Separately, the Australian Bureau of Statistics said the house price index rose by 1.9% in the fourth quarter of 2014, exceeding expectations for a 1.8% gain. The third quarter's figure was revised to a 1.4% rise from a previously estimated 1.5% increase.

Meanwhile, the Canadian dollar slipped lower, with USD/CAD up 0.12% to 1.2481.

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